QinetiQ shares rise on revenue growth

QinetiQ shares (LON: QQ) opened 10.86% higher on Thursday as the group released a trading statement for the for six months to 30 September 2020.

The group posted a 37% increase in orders and a 24% growth in revenue.

Thanks to a strong performance, the defence technology company reported a “strong” cash performance, with 134% underlying cash conversion.

Statutory operating profits fell 10% to £61.6m, which was due to a £13m property disposal gain the year previously.

QinetiQ has increased its full-year guidance and is now expecting a low double-digit revenue growth.

Steve Wadey, the chief executive, said: “We have delivered an excellent first-half performance despite a challenging environment. The resilience and determination of our people, who have continued to deliver for our customers in uncertain times has been outstanding and I would like to thank them for their contribution.

“We are entering the second half with confidence, with a significant order backlog, strong customer focus and an evolved strategy reflecting the increasing ambition of the Group and changing customer needs. We are increasing our full-year guidance whilst proactively managing the potential risks from further COVID-19 disruption.”

QinetiQ shares (LON: QQ) are trading +10.45% at 321,40 (1522GMT).